Recently Mumbai High Court granted bail to those arrested for circular trading and evasion of GST.Circular trading refers to selling and buying of goods via shell corporations  to  artificially  inflate  turnover.  There  is  no  actual change in ownership or movement of goods.Circular Trading is a term related to share markets. Circulating trading involves the members of an exchange for a cartel and trade among themselves in order to create huge false volumes and rigging the price of the shares and thus misleading the common investors into a trap.It is different from Insider Trading which involves a corporation’s stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company.Such a trading scheme does not represent a real change in the beneficial ownership of the security. Circular trading artificially inflates volumes as a way to show that a security has liquidity, maintain share price at the desired level, and to act as proof that there is market interest in the stock. The practice is banned and illegal in numerous countries.